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OncoMax has become the first project, financed by RVC Seed Fund

3 June 2010

On June 3, at the meeting of the investment committee of RVC Seed Fund two projects were considered. These projects included the Cardiomarker system of early diagnostics of the myocardial infraction, developed by Obninsk Pharmaceutical Company, and drug for treatment of renal cell carcinoma, developed by OncoMax. These are the first projects, that will be financed by RVC Seed Fund since the moment of its establishment at the end of last year. The proportion of the state and private investments in the companies’ capital is 25% and 75%, respectively.

The project of OncoMax Ltd aimed at the development of a drug for treatment of renal cell carcinoma. The drug has already undergone tests on rats and a new stage of preclinical development (humanization) is about to take place. In the course of this stage the drug will be adjusted for humans. It is the continuation of the preclinical development that will be financed by the seed fund (about 15 million of rubles, including the money of RVC Seed Fund). The drug should be considerably cheaper than its foreign analogues, which in the case of all the trials success will enable it to successfully compete with the drugs produced by the leading companies in the global market. The project is a winner of the Zvorykino Project.

At the meeting the members of the investment committee made a decision to approve the investments of the Fund into OncoMax project and in accordance with this decision the Fund will present transaction documents and make investments. This project has been prepared for consideration by the investment committee of RVC Seed Fund by its venture partner Maxwell Asset Management, that will also take part in the capital of the company represented by them.

Both projects are supposed to receive stage-by-stage investments in tranches, issued depending on the achievement of certain mile stones of the projects and implementation of the agreement’s terms and conditions. The first tranche can be issued to the companies in mid July after the implementation of a number of the requirements of the investment committee and legalizing the agreements.

“Currently RVC Seed Fund cooperates with 44 venture companies, half of them are regional companies. Today we have seen the first results of such cooperation. I hope that in the near future the portfolio of RVC Seed Fund will include new innovation projects as well”, - Alexey Teleshev, director of RVC Seed Fund, noted.

Igor Agamirzyan, CEO of Russian Venture Company, in his turn, added that despite the expectations, he was glad to see not Internet start-ups but biotechnological projects among the first projects of RVC Seed Fund.

“The key task, that should be accomplished by the fund in the near future, is to show to all the participants of the market the efficiency of the venture business model and availability of investments for technological businessmen. There have never been any similar instruments in Russia before and the venture business makes its first steps in the country. Now RVC Seed Fund works in very close cooperation with the venture partners, rendering expert support and assistance in the structuring of transactions and combining these activities with a thorough selection of projects and their expertise”, – Andrey Vvedensky, director of the department of programmes and projects of RVC, commented on the activities of RVC Seed Fund.